Saturday, February 2, 2013

ASAP - Bigger Pipe Dryer Gas

The Alaska Stand Alone Pipeline (ASAP) annual plan is out (LINK).

The 500 MCFD pipeline has grown from a "wet" gas 24" diameter (at 2500 psi) pipeline to a dry or lean gas 36" diameter (at 1480 psi) pipeline.

The change reflects a drop in value of natural gas liquids (NGL) due to - you guessed it - the lower 48 shale gas miracle. No NGLs means no propane for rural Alaska.

The project cost increased slightly to 7.7 B$ from 7.5 B$  (+/-30%)

The report inindicates that RFQs (Request for Qualifications) and RFPs (Request for Proposals) have been sent to qualified firms and that negotiations will start in January 2013.

The project lacks and agreement with and LNG anchor tenant.  Summary shown below (click to enlarge)

As projects go I suppose this is OK news unless you want a job soon or propane in the future. I'm always looking for the big impact announcements like "Notice to Proceed". Maybe next year....(the official Alaska Gas Pipeline blog motto).

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